Taiwan Parliament Approves $25bn Defense Funding
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- Taiwan Parliament approved an extra defense package of US$25bn (T$780bn) on May 8, roughly two‑thirds of the government’s request.
- President Lai Ching-te had sought a supplementary defense budget of T$1.25 trillion (US$50.5bn) covering US arms and domestic equipment such as drones.
- Kuomintang chairwoman Cheng Li‑wun said the approved funds would be used solely for US weapons and stressed the need for both strong defense and cross‑strait peace.
- United States pressed Parliament to adopt a “comprehensive” defense budget, emphasizing integrated air‑and‑missile systems and drones as critical.
- Washington announced an US$11bn arms sales package for Taiwan in December, the largest ever, and a potential US$14bn follow‑on package may be unveiled after President Donald Trump’s China trip.
- Matt Pottinger warned that Taiwan should negotiate with China from a position of strength, emphasizing deterrence through capable defense.
Why it matters: The opposition’s lower‑cost package reduces Taiwan’s ability to acquire both US and domestic defense systems, limiting deterrence against China, while the United States retains leverage through its arms sales and potential additional $14 billion package, reinforcing its strategic partnership with Taiwan.
